Japan Govt Budget outline: Need to appropriately mix monetary policy with growth-oriented fiscal policy

Japan’s Cabinet Office released its FY 2020/21 Budget outline on Wednesday, with the key highlights noted below.

Need to appropriately mix monetary policy with growth-oriented fiscal policy in compiling FY 2020/21 budget.

To take flexible and all possible economic steps by compiling FY 2019/20 extra budget along with FY 2020/21 annual budget.

To achieve not just near-term stimulus but also private demand-led sustainable economic growth.

To achieve primary budget surplus by fiscal 2025/26.

To thoroughly review budget expenditure, seek way to achieve wise-spending.

USD/JPY remains unperturbed by the Japanese Budget outline, keeping its range trade near fresh two-week highs of 109.20.